On May 1, Ace Bonding Company Purchased Inventory Costing $2,000 $\quad 2,000$

On May 1, Ace Bonding Company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 8, Ace pays for this inventory and records which of the following using a periodic inventory system?

A) Accounts Payable $\quad 2,000$
Cash $\quad 2,000$
B) Accounts Payable $\quad 1,960$
Purchase Discounts $\quad 40$
Cash $\quad 2,000$
C) Accounts Payable $\quad 2,000$
Purchase Discounts $\quad 40$
Cash $\quad 1,960$
D) Cash $\quad 2,000$
Accounts Payable $\quad 2,000$